Netflix has now lost a part from the surge since July. The case of Netflix has been relatively greatly in a short time. In such situations, it is always interesting to try to hang on for at least a rebound up then it can go quite fast and generate a reasonable return in a short time.
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Netflix is a volatile share, which tends to perform quite abrupt changes, not least in connection with quarterly reports. Now rapporthetsen added and then it should also the risk of being subjected to too sharp movements also have decreased.
Netflix has been in a positive trend since the bottom in February 2016, albeit that it took time before it took off upwards. So far, the current uptrend mäktat with a peak of just over 191 dollars on 21 July earlier in the year whereupon the share turned abruptly and set off in a southerly direction. On Monday thirty days after the peak, we got a lågpunkt which was followed up by a positive bar yesterday. Thirty days from a top or lågpunkt is, as we learned in the Gann-the school is always of interest, especially when it is as yesterday came in at a 180 degree relationship with the top at around 164 dollars.
In the graph, we can see how Netflix created a clear gap of 18 July and 9 August, a possible so-called ”island-top” which is a negative formation. At the same time, we have not been given an outright sell signal in place why we consider that there are good opportunities to try to reconcile and close the latter by the gaps around 178 dollars.
Netflix (daily chart)
Time we expect, as long as lågpunkten from Monday is holding the stock can cope with a rebound of at least seven to fifteen days, which is 1/2 each 1/4 part of our important thirty-day rhythm.
The daily oscillators are at low levels, and the faster the Slow stochastic indicator has started to turn up from real pressed levels.
Our two moving averages, 50-day and 200-day trendar on nicely up at the same time sued the the price on Monday of it later and turned upward, which is positive.
On the basis of a vågperspektiv, we can very well have five waves from the peak in July, so even the pricing structure speaks for a bounce.
Working with Gann in time and price combined with the Elliott wave, the conclusion is that Netflix is likely to keep up a time, at least one to two weeks which is an opportunity to go long. Entry can be made around the yesterday’s closing and the target level is set to 178 dollars. A stop-loss is placed preferably as a daily closing below 164 dollars.
As an alternative, you can for better risk/reward hope for a dip on a couple of dollars prior to taking the position.
Netflix – an overview
Entrance buy
$169.40
Ticker
NFLX
Målkurs
$178.00
Market
The Nasdaq
Emergency exit
$164.00
P/E (est 2018)
79.1
Latest
$169.34
Direct avk. (est 2017)
0.0 %
